RACINE, Wis. – Johnson Outdoors Inc., (Nasdaq: JOUT) has acquired Techsonic Industries Inc. from Teleflex Inc. (NYSE: TFX), adding the Humminbird brand of fishfinders and consumer electronics to its marine electronics group portfolio, according to a Johnson press release this morning.
Johnson Outdoors said the $28 million deal reinforces the company’s “strategic focus on acquisitions that complement its businesses, have market leading potential and strengthen profitability.”
The deal was simultaneously signed and closed on May 5 and was a stock purchase cash transaction. The transaction is anticipated to be accretive to cash flow and earnings in the first full fiscal year of ownership (fiscal 2005), according to the company.
Sales for Johnson Outdoors' marine electronics group – which includes trolling motors and accessories sold under the Minn Kota name, and now Humminbird – are expected to surpass $100 million across marketplace categories with combined estimated sales of more than $300 million annually, the company said.
"Minn Kota and Humminbird are two great brands built on a strong heritage of continuous innovation,” said Helen Johnson-Leipold, chairman and CEO of Johnson Outdoors. “An even greater future lies ahead for both as we look to leverage this formidable combination to drive growth in the marine electronics marketplace. We are very excited by the potential untapped opportunities to be realized short-term and long-term through this acquisition."
Techsonic to focus on core marine business
Teleflex Inc. acquired Techsonic Industries in 1993, as part of Teleflex Marine. Techsonic – a company specializing in underwater sonar and video viewing, and GPS technologies – employs 172 people at two locations: Eufaula, Ala. and Alpharetta, Ga. With this acquisition, Johnson Outdoors said it will now operate in 26 locations worldwide.
"With this transaction, Teleflex will focus our resources on continuing to bring boat builders and boaters superior new products in our core marine OEM and aftermarket businesses,” said Jeffrey P. Black, president and CEO of Teleflex. “The Humminbird brand of fishfinders and consumer electronics is well-suited to Johnson Outdoors' family of strong brands."
Johnson Outdoors Chief Operating Officer Jerry Perkins said he sees significant marketplace synergy and benefit in the merger of Minn Kota and Humminbird brands.
"We not only market to the same consumers and many of the same customers, we also share the same passion and drive to win in the marketplace,” Perkins said. “Competition is tough and our philosophy is to out-think, out-innovate and out-perform to stay on top."